Agility/NAS to retain Menzies name after merger
Hassan El-Houry, current CEO, NAS is expected to assume the role of Chairperson of the combined group
The largest deal in aviation services is building out a brand new entity - Menzies and Menzies Aviation - bringing together the capabilities of Scotland-based Menzies Plc and Kuwait-based National Aviation Services (NAS), a subsidiary of Kuwait-based Agility.
Following completion of the acquisition, it is intended that Menzies and NAS will be combined and managed by a team with representatives drawn from both Menzies and NAS with the current Chief Executive Officer (Philipp Joeinig), Chief Financial Officer (Alvaro Gomez-Reino) and Chief Operating Officer of Menzies in these roles in the combined group.
Hassan El-Houry, current CEO, NAS is expected to assume the role of Chairperson of the combined group, which will be governed by a professional board of directors through an appropriate governance structure.
"NAS/Agility intend to support Menzies' heritage and presence in the U.K., including retaining a corporate hub and significant head office functions in Edinburgh. In addition, the intention is to open a new head office for the combined group in London where certain senior management and some head office functions will be located. These arrangements will reflect the global footprint of the combined group's operations and enable the combined group to have a new centre in London where many of its clients have a presence."
The combined revenues of Menzies and NAS were in excess of $1.5 billion in 2021. The group is expected to have approximately 35,000 employees with a presence at more than 250 airports in 57 countries, handling more than 600,000 aircraft turns per year. The combined group will be wholly owned by Agility, a global supply chain services, infrastructure and innovation company.
"Agility's focus is on growth and shareholder value creation," says Vice-Chairman and CEO Tarek Sultan. "We are a long-term, multi-business operator and investor aiming to create value with a disciplined investment strategy that focuses on companies in high-growth sectors with strong fundamentals, reinforced by management teams with established records, best-practices governance, and alignment with Agility's vision and values.
"Menzies is a good fit. The aviation sector has strong growth potential, and Menzies is one of the most-established providers in the industry, with a sustainability focus we share. A NAS-Menzies combination will create a strong and resilient industry player, well positioned to grow and drive future earnings. We expect this acquisition to further diversify Agility's revenue base and strengthen cash flow generation."